Business Finance - Study Mode
[#541] Which of the following variables is not known in internal rate of return method of capital budgeting?
Correct Answer
(D) Discount rate
[#542] The euro zone is remarkably comparable to the United States in terms of
Correct Answer
(A) Population size
[#543] Which of the following is included in international liquidity? 1. Foreigner exchange reserve. 2. Borrowing capacity of the various countries. 3. Gold reserves.
Correct Answer
(D) 1, 2 and 3
[#544] Which of the following statement is not correct?
Correct Answer
(C) Cost of capital does not comprise any risk premium
[#545] Statement I: In payback period method, the risk of the project is adjusted by lessening the target payback period. Statement II: Sensitivity analysis helps in calculation of net present value of the proposal.
Correct Answer
(A) Statement I is correct, but Statement II is wrong